EUROPE

DVB Bank finances port projects in Finland and Russia

22 years ago

DVB Bank has closed a € 71m investment project with new Irish port operator, Multi-Link Terminals Ltd (MLT). The transaction relates to MLTs container terminal operations in Helsinki and Kotka in Finland and Litke Bay on Kotlin Island near St Petersburg. The current capacity of the Helsinki container terminal is 230,000TEUs per year. Kotka has only recently commenced operations, while the capacity of the Litke Bay terminal is 75,000TEUs per year.

Further expansion is required in order to meet future demand and the aim, in respect of the Kotka project, is to add container terminal equipment equivalent to a capacity of up to 50,000TEUs per year. The capacity of the Litke Bay Terminal is to be increased to 150,000TEUs (Phase II) and subsequently to 230,000TEUs (Phase III).The total investment of €71m comprises a €45m senior secured hybrid financing and €26m of equity provided by Container Finance Ltd Oy and Forth Ports Plc. The hybrid, a combination of project and corporate financing, consists of a ?41m Term Loan and a €4m stand-by loan facility.

The term loan has a 10-year tenure including a two-year availability period.

The investment will enable MLT to complete its expansion plans in Kotka and Litke Bay.

As part of the agreement, Containerships Ltd Oy has entered into a long-term commitment to use MLTs container facilities in respect of its own business. MLT has already won new business for Kotka and is actively engaged in discussions which are expected to similarly benefit St. Petersburg.